Stock market on July 8: Here are 5 things to know before opening bell

The Indian equity benchmarks are set to open on a flat note as indicated by NIFTY futures traded at Gift City in Ahmedabad. NIFTY futures traded at Gift City also known as Gift NIFTY futures fell 0.07% or 17 points to 25,499 amid stable cues from Asian markets. In yesterday's session, the SENSEX and NIFTY ended on a flat note.

Asian markets

Most of the Asian markets were trading higher after reports suggested that US President Donald Trump said that he was open to negotiations after imposing new tariff rates on partners including Japan and South Korea.

Japan's Nikkei rose 0.11%, Singapore's Straits Times advanced 0.11%Hong Kong's Hang Seng gained 0.17%, South Korea's KOSPI climbed 0.85% and China's Shanghai Composite rose 0.21%.

After announcing higher levies on several countries, Trump said he was still open to additional negotiations and pushed off increased duties until at least August 1. The president also teased the possibility of additional negotiations and delays later Monday at the White House, saying the notifications were “not 100% firm,” according to a report by Bloomberg.

US markets

Overnight, US markets ended lower after President Trump announced sharply higher US tariffs on goods from Japan, South Korea and other countries in the latest development in the US trade war.

Dow Jones fell 422 points to 44,406.36, S&P 500 declined 49 points to 6,229.98 and Nasdaq dropped 189 points to 20,412.52.

Trump sets 25% tariffs on Japan, South Korea

President Trump on Monday set a 25% tax on goods imported from Japan and South Korea, as well as new tariff rates on a dozen other nations that would go into effect on August 1.

Trump provided notice by posting letters on Truth Social that were addressed to the leaders of the various countries. The letters warned them to not retaliate by increasing their own import taxes, or else the Trump administration would further increase tariffs, news agency AP reported.

FII/DII activity

Foreign institutional investors bought shares worth 321 crore in cash segment on Monday and domestic institutional investors purchased shares worth ₹1,853 crore.

In the derivatives segment, FIIs sold index futures worth ₹668 crore and sold index options worth ₹3,784 crore.

Trade setup

On technical charts, the index formed a doji pattern on the daily chart, indicating indecision about the future direction of the index prices. Broadly, the index remains in a consolidation mode, ranging between 25,300 and 25,500 this week.

On the options data front, the 25,500 calls hold the highest open interest, indicating strong resistance for this week’s expiry. Similarly, on the downside, the 25,000 puts hold the highest open interest, indicating a strong support on the downside for NIFTY50.